In today’s briefing:
- Last Week in Event SPACE: Tencent, Ecopro, Japan’s Governance, Jardines, Citizen
- Money Forward (3994) | Costs Under Control
- Price/Flow Impact on Four Constituent Changes in KODEX Top 5 Plus ETF Rebalancing in June
- Calnex: De-Facto Standards for High-Speed Network Infrastructure Worldwide
Last Week in Event SPACE: Tencent, Ecopro, Japan’s Governance, Jardines, Citizen
- Prosus (PRX NA) moved 96mn shares of Tencent (700 HK) into CCASS. Tencent shares fell hard. If the share price fell because of a block offering, that would be unwarranted.
- Ecopro (086520 KS) is up an eye-watering 590% in the past three months, primarily on Ecopro BM (247540 KS)‘s outperformance, together with sentiment towards soon-to-be-listed 52.8% held Ecopro Materials.
- Japan’s Finance Minister said that companies need to improve their PBRs, and that “increasing corporate value of listed companies would allow for Japan to realise sustainable growth.”
Money Forward (3994) | Costs Under Control
- Money Forward’s Q1 sales grew 43% YoY to 6.8 billion yen, which beat the top end of guidance (Y6.2-6.6b).
- EBITDA came in at minus 704 million yen, far ahead of guidance for -Y1.2-1.7b. Money Forward drastically curtailed hiring in the quarter.
- Money Forward’s stock has turned in a 26% performance so far this year. We believe the stock can continue to rally on focused cost control.
Price/Flow Impact on Four Constituent Changes in KODEX Top 5 Plus ETF Rebalancing in June
- Samsung SDI and LG Chem are expected to be newly included in the index, while Hana Financial and KT&G Corporation are predicted to be excluded.
- The correlation between the price movement and the flow direction on the rebalancing trading day of constituent changes from the past reviews was quite high.
- We can set the price impact expectation for the upcoming review even more aggressively, given that the size of the flow x DTV is more significant than in previous cases.
Calnex: De-Facto Standards for High-Speed Network Infrastructure Worldwide
- Despite a micro-cap status, Calnex is the key player behind the evolution of high-speed network infrastructure on a truly global basis;
- The company has a market-dominant position at several critical points across the global telecoms ecosystem;
- The recent plunge in share price demonstrates Mr. Market’s short-termism and presents a good opportunity for incoming shareholders, in our opinion.
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